Technically Speaking, September 2009

Letter from the Editor

While September is traditionally a time to think about going back to school, on Wall Street it seems more like the time of year to head back to work. Volume is usually lower than average in the summer months as traders focus on vacations more than they do on getting the best bid. As our members gear up to face the challenges of returning to work, we offer up some opinions on recent books that can help them refocus and sharpen their skills.

One trend I noticed in my summer’s reading list was the emphasis on volatility. The markets have certainly been volatile recently and several insightful authors have offered tips on how to profit from that volatility. We also have a research piece by Ed Easterling of Crestmont Research which shows how prices respond after experiencing volatility.

As always, we hope you find this issue of Technically Speaking to be useful as well as interesting. Please let us know what you like, and what you’d like to see. Send me an email at editor@mta.org.

Sincerely,
Mike Carr, CMT

What's Inside...

The Seven Rules of Wall Street by Sam Stovall

Stovall examines seven well-known pieces of Wall Street wisdom:

  1. Let your winners...
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Volatility In Perspective

This article was originally published by Crestmont Research and is reproduced with permission.

Who or what is rocking the boat?...

Read More

Volatility-Based Technical Analysis by Kirk Northington

Many novice technicians blindly trade signals generated by their favorite indicator. Eventually,...

Read More

Trend Following (Updated Edition): Learn to Make Millions in Up or Down Markets by Michael Covel

“Cut Your Losses Short; Let your profits run on.”
– Widely attributed to David Ricardo

While many are familiar...

Read More

Trading Regime Analysis: The Probability of Volatility by Murray Gunn

The first chapter of Gunn’s Trading Regime Analysis is titled “There is...

Read More

An Interview with Craig Fullen, CMT

This month I had the pleasure of speaking with Craig Fullen, CMT about his career path, trading techniques, the CMT...

Read More

Intermarket Trading Strategies by Markos Katsanos

The study of intermarket technical analysis was pioneered by John Murphy, CMT....

Read More

A Fundraising Reception in celebration of the Opening of the MTAEF/MTA Library at Baruch College

All are cordially invited to attend a Fundraising Reception in celebration of the opening of the MTAEF/MTA Library at Baruch...

Read More

MTA Announcements

MTA Goes to Mumbai, India – Technically Speaking 2009

The MTA recently visited Mumbai and held its first...

Read More

The Seven Rules of Wall Street by Sam Stovall

Stovall examines seven well-known pieces of Wall Street wisdom:

  1. Let your winners ride, but cut your losses short
  2. As goes January, so goes the year
  3. Sell in May and then go away
  4. There’s no free lunch on Wall Street
  5. There’s always a bull market someplace
  6. Don’t get mad – get even
  7. Don’t fight the...
To view this content you must be an active member of the CMT Association.

Not a member? Join the CMT Association and unlock access to hundreds of hours of written and video technical analysis content, including the Journal of Technical Analysis and the Video Archives. Learn more about Membership here.

Contributor(s)

Sam Stovall, CFP

As Chief Investment Strategist, Sam Stovall serves as analyst, publisher and communicator of CFRA’s outlooks for the economy, market, and sectors.  He is the Chairman of the CFRA Investment Policy Committee, where he focuses on market history and valuations, as well as...

Michael Carr, CMT

Mike Carr, who holds a Chartered Market Technician (CMT) designation, is a full-time trader and contributing editor for Banyan Hill Publishing, a leading investment newsletter service. He is an instructor at the New York Institute of Finance and a contributor to various additional...

Volatility In Perspective

This article was originally published by Crestmont Research and is reproduced with permission.

Who or what is rocking the boat? Market volatility has surged over the past two years; investors have had to hold on and try to figure out what this means. Is the current level of volatility “normal” or is it extreme? The purpose of this presentation is to graphically put volatility...

To view this content you must be an active member of the CMT Association.

Not a member? Join the CMT Association and unlock access to hundreds of hours of written and video technical analysis content, including the Journal of Technical Analysis and the Video Archives. Learn more about Membership here.

Contributor(s)

Ed Easterling

Ed Easterling is the author of Probable Outcomes: Secular Stock Market Insights and the award-winning Unexpected Returns: Understanding Secular Stock Market Cycles. He is currently president of an investment management and research firm. In addition, he previously served as an adjunct professor...

Volatility-Based Technical Analysis by Kirk Northington

Many novice technicians blindly trade signals generated by their favorite indicator. Eventually, they blow up their account unless they are fortunate enough to meet a more experienced technician who teaches them the valuable lesson that we actually trade price, not our indicators. After reading Northington’s original work, I realized that more than price, technicians...

To view this content you must be an active member of the CMT Association.

Not a member? Join the CMT Association and unlock access to hundreds of hours of written and video technical analysis content, including the Journal of Technical Analysis and the Video Archives. Learn more about Membership here.

Contributor(s)

Kirk Northington, CMT

Kirk Northington, who holds a Chartered Market Technician (CMT) designation, is a quantitative technical analyst and the founder of Northington Trading, LLC. He is also the creator of MetaSwing, advanced analytic software for Bloomberg Professional, MetaStock and TradeStation. He trades his own accounts, and...

Michael Carr, CMT

Mike Carr, who holds a Chartered Market Technician (CMT) designation, is a full-time trader and contributing editor for Banyan Hill Publishing, a leading investment newsletter service. He is an instructor at the New York Institute of Finance and a contributor to various additional...

Trend Following (Updated Edition): Learn to Make Millions in Up or Down Markets by Michael Covel

“Cut Your Losses Short; Let your profits run on.”
– Widely attributed to David Ricardo

While many are familiar with David Ricardo’s contribution to economics through his “Theory of Competitive Advantage.” fewer are aware that he was also a large speculator in shares and British consuls (perpetual bonds) during the early 19th century, and as a result amassed a significant fortune in the...

To view this content you must be an active member of the CMT Association.

Not a member? Join the CMT Association and unlock access to hundreds of hours of written and video technical analysis content, including the Journal of Technical Analysis and the Video Archives. Learn more about Membership here.

Contributor(s)

Michael Covel

Michael Covel is a highly respected author, film director, and entrepreneur. He extends his trading expertise to readers and clients through the use of film, the worldwide web and the written word. In 1996, he founded the well-renowned TurtleTrader® website, which has...

Ajay G. Jani, CMT

Ajay G. Jani, who holds a Chartered Market Technician (CMT) designation, is the Managing Partner and CIO of Single A Capital. He has been in the investment business as a technical analyst since 1989, and was previously the Managing Director of Gramercy, an...

Trading Regime Analysis: The Probability of Volatility by Murray Gunn

The first chapter of Gunn’s Trading Regime Analysis is titled “There is NO Holy Grail.” This summarizes the trading philosophy he details in this book. While trade selection and entry and exit techniques can be automated to a great extent, ultimately he realizes no single tool will work in all market conditions. For this...

To view this content you must be an active member of the CMT Association.

Not a member? Join the CMT Association and unlock access to hundreds of hours of written and video technical analysis content, including the Journal of Technical Analysis and the Video Archives. Learn more about Membership here.

Contributor(s)

Murray Gunn

Murray Gunn is a currency investment manager with over twenty years experience in the international capital markets, managing portfolio risk across all asset classes within some of the world’s largest fund management organizations. He holds an MA (Hons) in Economics and is...

Michael Carr, CMT

Mike Carr, who holds a Chartered Market Technician (CMT) designation, is a full-time trader and contributing editor for Banyan Hill Publishing, a leading investment newsletter service. He is an instructor at the New York Institute of Finance and a contributor to various additional...

An Interview with Craig Fullen, CMT

This month I had the pleasure of speaking with Craig Fullen, CMT about his career path, trading techniques, the CMT program, and the state of the financial markets as well as the job market in these difficult economic times.

Craig obtained an undergraduate degree in accounting and then went on to receive a law degree from Rutgers University. Following law school, he worked as...

To view this content you must be an active member of the CMT Association.

Not a member? Join the CMT Association and unlock access to hundreds of hours of written and video technical analysis content, including the Journal of Technical Analysis and the Video Archives. Learn more about Membership here.

Contributor(s)

Craig Fullen, CMT

Craig Fullen, who holds a Chartered Market Technician (CMT) designation, is the President of The Fullen Law Group Co., LPA, a law firm which concentrates in the areas of corporate/business law and contract preparation, review and negotiation. He was previously a Portfolio...

Yevgen Avramych

Yevgen Avramych works in the investment services area of Prudential Financial in New Jersey. He is a graduate of Seton Hall University, with a degree in Finance and minor in Economics. Yevgen has passed the level 1 exam of the CMT program.

Intermarket Trading Strategies by Markos Katsanos

The study of intermarket technical analysis was pioneered by John Murphy, CMT. His 1991 book, Intermarket Technical Analysis: Trading Strategies for the Global Stock, Bond, Commodity, and Currency Markets, was the first to identify tradable relationships between these markets. His work included a number of charts which demonstrated the leading and lagging relationships.

Six...

To view this content you must be an active member of the CMT Association.

Not a member? Join the CMT Association and unlock access to hundreds of hours of written and video technical analysis content, including the Journal of Technical Analysis and the Video Archives. Learn more about Membership here.

Contributor(s)

Markos Katsanos

Markos Katsanos has contributed several articles to Technical Analysis of Stocks & Commodities and other financial publications. He is currently in the process of setting up his own financial consulting company and can be reached at markos.katsanos@gmail.com.

Michael Carr, CMT

Mike Carr, who holds a Chartered Market Technician (CMT) designation, is a full-time trader and contributing editor for Banyan Hill Publishing, a leading investment newsletter service. He is an instructor at the New York Institute of Finance and a contributor to various additional...

A Fundraising Reception in celebration of the Opening of the MTAEF/MTA Library at Baruch College

All are cordially invited to attend a Fundraising Reception in celebration of the opening of the MTAEF/MTA Library at Baruch College on Tuesday, November 17, 2009, 5:00 PM – 9:00 PM, at the Newman Library at Baruch College (25th and Lexington, New York).

At this event you can…

  • Tour the new MTAEF/MTA Library facilities
  • Enjoy cocktails and hors d’oeuvres with old friends
  • Meet...
To view this content you must be an active member of the CMT Association.

Not a member? Join the CMT Association and unlock access to hundreds of hours of written and video technical analysis content, including the Journal of Technical Analysis and the Video Archives. Learn more about Membership here.

Contributor(s)

MTA Announcements

MTA Goes to Mumbai, India – Technically Speaking 2009

The MTA recently visited Mumbai and held its first international seminar, Technically Speaking 2009. On Saturday, August 22, 2009, in conjunction with UTVi, the MTA held a FREE seminar for all MTA members at the Taj President Hotel, in Mumbai. This seminar focused on the current state of global Technical Analysis (TA) and...

To view this content you must be an active member of the CMT Association.

Not a member? Join the CMT Association and unlock access to hundreds of hours of written and video technical analysis content, including the Journal of Technical Analysis and the Video Archives. Learn more about Membership here.

Contributor(s)